Apple has invested a whopping $1.5 billion in satellite communications, marking a significant step towards enhancing its satellite messaging capabilities. This investment in Globalstar grants Apple a 20 percent share in the company, along with financial support for upgrading infrastructure to enable messaging that goes beyond just emergency use.
Investment Breakdown
Of the total investment, Apple allocated $1.1 billion for developing satellite infrastructure and an additional $400 million to acquire its stake in Globalstar. This collaboration began in 2022, allowing iPhone 14 users to utilize emergency satellite messaging. However, with the rollout of iOS 18, the services are expanding—users can now send texts, emojis, and tapbacks through both SMS and iMessage via satellite, ensuring end-to-end encryption for iMessages.
Enhancing Satellite Services
The funding will aid Globalstar in launching numerous new satellites and improving its ground network. They plan to introduce up to 26 additional satellites to their current fleet of 31 low Earth orbit satellites. Moreover, over $200 million of the investment will be directed towards reducing some of Globalstar's existing debt.
Competitive Landscape
Apple retains an impressive 85 percent of Globalstar’s network capacity, providing ample opportunity to grow its satellite services. Apple isn’t the only player in this market; competition is intensifying, as Google has recently partnered with Skylo to provide emergency SOS messaging for its Pixel 9.
This agreement is anticipated to be completed by early November 2024. Currently, Apple is offering these satellite services at no cost to iPhone users. However, the addition of features beyond just emergency communications suggests that Apple might consider charging for the service in the future.
